Purpose: Among the methods of comprehensive analysis for a product or an enterprise, there
exist defects and deficiencies in traditional standard cost analyses and life cycle assessment
methods. For example, some methods only emphasize one dimension (such as economic or
environmental factors) while neglecting other relevant dimensions. This paper builds a factor
analysis model of resource value flow, based on full life cycle assessment and eco-design theory,
in order to expose the relevant internal logic between these two factors.
Design/methodology/approach: The model considers the efficient multiplication of
resources, economic efficiency, and environmental efficiency as its core objectives. The model
studies the status of resource value flow during the entire life cycle of a product, and gives an
in-depth analysis on the mutual logical relationship of product performance, value, resource
consumption, and environmental load to reveal the symptoms and potentials in different
dimensions.
Findings: This paper illustrates logical relationships among resource efficiency, economic
efficiency and environmental efficiency, builds a fully comprehensive evaluation analysis model
to trace, evaluate and analyze the status of the material and value flow of the product life cycle
process. Originality/value: This provides comprehensive, accurate and timely decision-making
information for enterprise managers regarding product eco-design, as well as production and
management activities. To conclude, it verifies the availability of this evaluation and analysis
model using a Chinese SUV manufacturer as an example.
